Having just retired from 45 years in “Hi-tech”, let me add some perspective.
The foundry issue you describe is a function of the regulation and taxation issues I previously addressed. I tried forcing this issue with regard to ASICs and FPGAs a dozen years ago.
Its also a policy and priority issue, as is the consequence of any engagement with China.
The notion that any encounter with China automatically escalates to WWIII, as others pretend, is nonsense.
This administration cares little about National Defense, so preparedness and capacity has not only been neglected, but undermined.
The experienced engineers and managers who would train the young engineers are being pushed out, both to contain cost and further Obama’s goal of a weaker America.
Trump needs:
John Bolton
Mike Flynn
Newt Gingrich
Rudy Giuliani
Art Laffer
Tom Cotton
a solid working relationship w Paul Ryan
Charles Payne
Ha! so we are more or less in agreement.
Except......
No one can predict how a conflict will escalate...no one.
In the civil war they thought it would be over very quickly, 3 months max.
In WWI, there was a serious argument made that Europe was so closely economically intertwined the various powers could not fight a long war...but they did.
It is quite possible we try a show of force with China or the other way around and it escalates beyond the point where either side can back down. it is a matter of face. Chinese honor is bound up with Face, perhaps less than the Japanese but not all that much less.
Were such a situation to come to pass, we are in no way prepared to fight such a war, as you seem to be aware.